Paramount Skydance Corporation (PSKY) secured up to $46.97 billion in PIPE financing to fund its acquisition of Warner Bros. Discovery. Larry Ellison’s Revocable Trust and RedBird Capital Partners led the funding package. Sovereign wealth funds from Saudi Arabia, Abu Dhabi, and Qatar also participated in the financing.
The company filed to increase its authorized Class B common stock from 5.5 billion to 7 billion shares. Paramount Skydance will issue one ten-year warrant to existing Class B stockholders for every share held. Each warrant grants the holder the right to purchase one share of Class B Common Stock.
PSKY shares jumped nearly 8% following the announcement. Guggenheim raised its price target to $14 while maintaining a Neutral rating. Wolfe Research reiterated an Underperform rating with a $10 target, citing concerns over potential equity raises.